Our divergence indicator is throwing out red flags

This is an indicator I do not show in the timing charts, as it something I use to combine what I am seeing with the other timing systems and I do not want to bombard you with different indicators. But this is what I call the divergence indicator. When you see a bullish or bearish divergence forming, it is a serious warning sign of a reversal that can be very sharp.

It can take time to play out, but that is why I use the other timing systems for entries, and use the divergence indicator for direction. The chart below has green circles which represent the bullish divergence and the red circles represent the bearish divergences. Take a look and you will see why I am not too eager to short the indexes right now. Hope this helps. G-